Rancho Palos Verdes City Council
   

TO:

TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL

FROM: DIRECTOR OF PUBLIC WORKS

DATE: DECEMBER 17, 2002

SUBJECT: NON-EXCLUSIVE COMMERCIAL REFUSE COLLECTION AND DISPOSAL SERVICES ANNUAL AGREEMENT FOR 2003

Staff Coordinator: Lauren Ramezani, Sr. Administrative Analyst

RECOMMENDATION

Authorize the Mayor and the City Clerk to execute non-exclusive commercial refuse collection and disposal services agreements with: Ace Roll Off Rubbish Service, Inc., BFI Waste Systems of North America, Inc., California Waste Services, Consolidated Disposal Services, LLC, Easy Roll Off Services, EDCO Disposal Corporation, Gemini Services, Inc., HMD Waste Company, Integrated Waste Industries, Inc., Ivy Rubbish Disposal, S & H Disposal Company, and USA Waste of California dba Waste Management.

BACKGROUND

Since 1992 the City has entered into one-year non-exclusive franchises for Commercial Refuse Collection and Disposal with any firm that meets the agreement requirements. The City Council decided to use a non-exclusive franchise instead of an exclusive franchise following a series of townhall meetings where commercial business owners stated their preference for non-exclusive franchises. The Agreement was revised in December 1994 to include additional requirements pertaining to business sector recycling and penalty provisions for delinquent quarterly reports. In November 2000, the City Attorney updated and revised the commercial hauling agreement to emphasize recycling and waste diversion efforts.

DISCUSSION

The non-exclusive franchise allows the City to collect a five (5) percent franchise fee and up to a five (5) percent AB 939 fee from haulers doing business in the City. Since January 2001, haulers have been entitled to a reduction in their AB 939 fees if they show receipts of solid waste tonnage diverted from landfills to recycling or material processing centers. The goal is to encourage haulers by providing a financial incentive to recycle construction, demolition, remodeling and business waste such as dirt, concrete, asphalt, cardboard, etc. These haulers provide bins to businesses and

roll off dumpsters to residential and non-residential customers during construction, demolition, cleanup and remodeling activities.

All haulers are required to submit payments on a quarterly basis along with a quarterly report, which provides refuse disposal and recycling information. Additionally, each hauler is required to annually obtain a City business license and submit proof of general liability and workers compensation insurance.

In December 2000, a five-year notice of non-extension was issued to all of the City's authorized non-exclusive commercial haulers. This notice allows the City Council, anytime after December of 2004, to decide to:

  1. Continue the City's current non-exclusive (unlimited) franchise agreements with the commercial haulers; or
  2. Change to an exclusive (limited) franchise agreement with one or more commercial haulers.

One of the benefits of reducing the number of haulers is more accurate disposal reporting, monitoring and implementation of recycling programs in the commercial/non-residential sector.

FISCAL IMPACT

The City received approximately $30,000 in franchise fees and $25,000 in AB 939 fees in FY 01-02 from commercial haulers. AB 939 fees are deposited in the Solid Waste fund and are used to develop and implement recycling programs to meet the AB 939 mandate. Franchise fees are deposited in the General Fund.

Respectfully Submitted:
Dean E. Allison, Director of Public Works

Reviewed by:
Les Evans, City Manager

Attachment: Copy of agreement